State Ex Rel. Dickson v. Kearns

348 P.2d 1002, 66 N.M. 390
CourtNew Mexico Supreme Court
DecidedFebruary 5, 1960
Docket6552
StatusPublished
Cited by10 cases

This text of 348 P.2d 1002 (State Ex Rel. Dickson v. Kearns) is published on Counsel Stack Legal Research, covering New Mexico Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State Ex Rel. Dickson v. Kearns, 348 P.2d 1002, 66 N.M. 390 (N.M. 1960).

Opinion

MOISE, Justice.

This is an action brought by the Attorney General of the State of New Mexico asserting that the respondent, Chief of Division of Liquor Control of the State, had undertaken to reclassify an existing "club” license as a “dispenser’s” license, and that he had no power under the law to do so. Petitioner asked the court to enjoin respondent from making the reclassification, and to cancel the license because it had not been used for a period of six months. The American Legion Post No. 34, Inc., the holder of the license in question, was permitted to intervene, as was Don Lee, who proposes to purchase said license.

After a hearing, the trial court ordered the license reinstated as a “club” license and enjoined respondent from thereafter reclassifying it, but refused to cancel it for non-use. Respondent and intervenors appealed from the order enjoining the reclassification as a “dispenser’s” license and petitioner filed a cross-appeal from the court’s refusal to cancel the license. However, the cross-appeal does not appear to have been perfected by the filing of briefs and a motion of cross-appellant to dismiss it has been filed. Accordingly, only the appeal is considered herein.

It appears that the American Legion Post No. 34, Inc., was the owner and holder of “club” license No. 155, and proposes to transfer it to intervenor, Don Lee. On April 29, 1958, the then Chief of Division-of Liquor Control approved an application to reclassify the “club” license to a “dispenser’s” license. The existing “club” license was not cancelled, nor was a “dispenser’s” license issued.

Appellant argues that the court erred in holding that the Chief of Division of Liquor Control did not have authority to change the category of the license from “club” to “dispenser” and in enjoining him from doing so, when in fact the reclassification had been fully effected prior to the court’s order, and further argues that by Ch. 72, N.M.S.L. 1959, the reclassification was confirmed and validated.

Concerning the first argument, it appears to us that this point is a two-pronged one, in that it first asserts that the injunction could not issue to enjoin a reclassification that had already been accomplished, and next asserts that the Chief of Division of Liquor Control had the authority to do what he purported to do.

The court made its findings No. 6 and No. 9, which read as follows:

“6. Intervener, American Legion Post No. 34, Inc., has held the aforesaid liquor license, Club License No. 155, at all times during the years 1955, 1956, 1957 and 1958, to date, except that on or about April 29, 1958, the Respondent, Chief of the Division of Liquor Control, entered his order purporting to reclassify the aforesaid liquor license from a club license to a dispenser’s license, by approving an application for such reclassification filed by the Intervener, American Legion Post No. 34, Inc. That the said Club License was not cancelled and a dispenser’s license was not issued, but that the Chief of the Division of Liquor Control merely purported to reclassify the license without the cancellation of the old license or the issuance of a new one.”
“9. Respondent was duly notified of protests against any proposed reclassification and transfer of aforesaid liquor license, Club License No. 155, on or about March 14, 1958, but Respondent nevertheless proceeded to reclassify said license on or about April 29, 1958.”

and concluded as follows in conclusions 9, 10, 11, 12 and 13:

“9. The Respondent, Chief of the Division of Liquor Control, has no authority or discretion under the law to reclassify a club license to a dispenser’s or retailer’s liquor license.”
“10. Respondent had a clear and mandatory legal duty to refuse to approve the application by Intervener, American Legion Post No. 34, Inc., for reclassification of its Club Liquor License to a Dispenser’s Liquor License.”
“11. The action of the Respondent, in approving the reclassification of American Legion Post No. 34, Inc., liquor license from a Club Liquor License to a Dispenser’s Liquor License on or about April 29, 1958, was wholly unauthorized and unlawful.”
“12. The Respondent should be required by the decree herein to reinstate the aforesaid liquor license, License No. 155, held by American Legion Post No. 34, Inc., as a Club Liquor License.”
“13. Respondent should be enjoined by the decree from undertaking to authorize or approve any reclassification of Club Liquor License No. 155, held by American Legion Post No. 34, Inc., as so reinstated; from issuing to American Legion Post No. 34, Inc., any renewal license for the fiscal year July 1, 1958 — June 30, 1959, other than a Club Liquor License; from undertaking to authorize operation at any premises other than the premises of American Legion Post No. 34, Inc., Alamogordo, New Mexico, except upon application for transfer of same as a Club License and otherwise in accordance with law; and from taking any other action which would purport to affect the classification of the aforesaid License No. 155 as Club License.”

It is thus clear that even though the court states in finding No. 6 that the “club” license was never cancelled nor a dispenser’s license issued, nevertheless he considered that the purported reclassification had been accomplished, and accordingly his conclusion No. 12 that the license should be reinstated as a “club” license, and that then repondent should be enjoined from reclassifying as set forth in conclusion No. 13 must have been based upon conclusions 9 and 10 that respondent had no “authority or discretion” to reclassify.

Appellants admit that there is no statute expressly authorizing reclassification, but assert the authority in the Director to do so by virtue of § 46-2-3, N.M.S.A.1953, which vests in the Chief of the Division all the powers enumerated in the liquor control act and “such additional powers as may be necessary to effectuate the same,” and by virtue of § 46-2-4(d) which gives him authority “to issue or refuse to issue the licenses and permits provided for in this act, and, in the exercise of such authority, he shall investigate into the qualifications of all applicants to engage in the * * * sale of alcoholic liquors.”

We must consider these sections in an effort to determine whether or not the Chief of Division had the authority claimed. Appellants, in addition to finding the power implied in the provisions hereinbefore referred to, assert that the Chiefs of Division have exercised the power for many years and have reclassified licenses. Findings to this effect were tendered to the court and refused, amounting to a denial of the same. However, the court made no contrary finding and there is evidence to support the findings requested. In fact it clearly appears that some 55 licenses were reclassified during the last 5 years, several of these re-classifications being from “club” to “dispenser’s.” Is the fact material ? Appellants say “yes” because' as was said in Valley Country Club, Inc. v. Mender, 64 N.M. 59, 323 P.2d 1099

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Bluebook (online)
348 P.2d 1002, 66 N.M. 390, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-dickson-v-kearns-nm-1960.